Question

2. “The accountant is the most important advisor to an entrepreneur.” Discuss the validity of this statement, explaining a variety of ways an accountant assists an entrepreneur.

Answer 1

Different ways an accountant helps an entrepreneur:

• Be more responsible when it comes to time, energy and money being invested
• An entrepreneur has to stick to three basic projections:
  • future revenues
  • future operating costs
  • assets needed to service future demand.
    • Accounting and finance step in, as they offer the analytical tools for connecting expectations with what’s actually possible in the real world.
• An accountant help them be more efficient in attracting customers and in selling their goods or services.
• An accountant can track your progress by measuring profits and expenses to see whether you’ve turned out profitable & productive, and also to highlight problem areas.
  • Through financial analysis of an accountant entrepreneur becomes more transparent and responsible in running the business.
• Accounting expertise may help an entrepreneur on tips - how much to save, and how to decrease expenses so entrepreneurs can reach their business and personal goals.
• Accountants are also needed to form a financial plan for their companies independently, but these plans may lack the extensive analysis, detail, and forecasting that a trained accountant familiar with entrepreneurs can provide
• An accountant can provide critical information in the early stages of a company’s life cycle to help the business owner establish good financial habits that can lead to strong performance and sustainable success.
• Guidance given by accountants on the details of hiring and paying employees can be especially beneficial to small business owners.
  • Each state has its own tax requirements for employers, and it’s important that these regulations be followed to avoid severe fines and/or back taxes.
• An accountant will serve as a trustworthy aide to business owners as they build a team and expand their processes and procedures.
• CEOs can be confident that their delicate financial materials are being managed by a knowledgeable professional, they can focus on the tasks at hand and work toward their business goals.